Perspective
27 Sep 2024
5 minute read
2025 commercial real estate outlook
Turning the corner to capitalize on a generational opportunity
After some years of turbulence and uncertainty, commercial real estate organisations may now have a generational opportunity to position their companies and properties for what’s around the corner.
Key takeaways
- Revenue growth: Nearly 90% of respondents expect their company's revenues to increase, with 60% anticipating growth over 5% year over year.
- Budget increases: There is a significant shift towards increased budgets, especially in data and technology, with 81% of respondents identifying this area for focused spending.
- Macroeconomic concerns: Elevated interest rates, cyber risk, changes in tax policies, and cost of capital are identified as the biggest factors impacting financial performance in the next 12 to 18 months.
- Investment opportunities: High-growth property sectors such as industrial and manufacturing, multifamily, and hotel and lodging assets are seen as top opportunities.
- Sustainability focus: A strong emphasis on deep energy retrofits and sustainability strategies, with 76% of respondents planning significant retrofits in the next 12 to 18 months.
